Coins - A Short History Of Coinage And Coin Collecting

The first medium of exchange used in the early American colonies was wampum beads and belts. Wampum was used by the American Indians for several things. It served as a medium of exchange between tribes, as a communication medium, and to symbolize important events. Any event or commumication was considered official when a wampum belt symbolizing it was delivered. Belts were also worn by individuals to show their ranking within the tribe.

Wampum Beads and Belts Served As The First Coins In US History

Wampum is beads originally made from shells and highly polished. Shells of many different colors were ground down to the size of a grain of corn. Holes were drilled in them so they could be strung on a hemp string or leather thong. Later on the shell beads were replaced by glass beads manufactured in Europe. The beads were then strung onto hemp strings or woven into belts. As a trade medium, the beads were usually left unstrung. Belts and strings were exchanged, in a measure called a fathom. This was the number of beads which could be exchanged for five shillings.

Because of a severe shortage of coinage in the early American colonies, wampum was considered a legal method of exchange. As early as 1637 wampum was recognized as a medium of exchange by the General Court of Massachusetts. Its value was established as 6 for a penny for any sum under 12 d. This law was repealed by 1651, so for fourteen years wampum beads and belts circulated as legal tender in Massachusetts.

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